Next week, by my mail, Inflewinzer ! -
Only tomorrow left for my prediction to eventuate - (re ann. on refinance deal) ??
meanwhile heres some food for thought on other fronts -
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- Article rank
- 21 Apr 2015
- The Advertiser
- CHRISTOPHER RUSSELL
OZ on the hunt in long-term strategy to grow
This is a long-term growth strategy focused on value
creation
ANDREW COLE
From page 25 NEW managing director of copper miner OZ Minerals Andrew Cole has promised the company will become safer, leaner, smarter and more diversified.
“This is not business as usual,” Mr Cole said as he delivered the results of a strategic review instigated when he took over in December.
“Nor is this a cost-cutting exercise. This is a long-term growth strategy focused on value creation.”
OZ has delivered its best quarterly production result since 2010 from the Prominent Hill mine, right, in SA.
It will step up its mining rate, has increased its guidance for production in the full year, revamped management structures and radically changed its parameters on acquisitions.
OZ, which is debt free and held $218.5 million in cash at December 31, will broaden the scope of its hunt for assets.
Previously, OZ has restricted its search to large, long-life copper projects – producing 50,000 tonnes to 100,000 tonnes a year – in favourable and stable jurisdictions.
“That was a very tight box, every company in the world wants a tier one copper asset,” he said. Now it will look at any projects likely to create value, in copper and other base metals and gold – with several opportunities already into the due diligence phase.
“The globe is open to us,” Mr Cole said. “But there are some caveats: we are not going to put people at risk . . . and if we have to work unethically, we will not go there.”
Takeovers, single asset purchases and joint ventures would be considered with OZ’s skill set easily adaptable .
OZ is relocating its head office from Melbourne to Adelaide and Mr Cole said it was “absolutely” possible to run a global business from SA.
He said OZ had shown admirable discipline in the past by not buying an overpriced, big asset when prices were high. Now, there were more distressed companies and bargains to be had.
Mr Cole is leaning towards a portfolio of smaller projects to diversify the base of the companyand reduce risk. While he wants to act quickly, there is no rush with Prominent Hill running to 2028.
The Carrapateena project, north of Port Augusta, would be “the backbone of the company for decades” but it needed work to get to a better prefeasibility offering.
Carrapateena’s data room attracted 25 players when it was open to potential partners and although formal talks were suspended, OZ remained in contact with all contenders.
Mr Cole said improved safety was paramount. It was “completely unacceptable” that the serious injury rate was running at 1.5 injuries a month.
A $4 million investment would also be made as a preventative step to improve the integrity of the Malu mine open pit at Prominent Hill.
The board wants to bring more certainty to shareholder distributions and has decided to pay a minimum 20 per cent of net cash which is not needed for investment in growth or for balance sheet purposes.
By the way, HGO have already recently established a small office in Adelaide and it should not surprise if at some time in the future they, also, decide to move their head office there from Sydney - all IMO of course!
(20min delay)